- KCB Bank Kenya has secured Ksh12.9 billion (US$100 million) from the European Bank for Reconstruction and Development to expand MSME lending.
- Women and youth owned businesses will receive 35 per cent of the funding, while 30 per cent will support green investments.
- The facility will also provide technical assistance to strengthen KCB’s green financing and improve access to affordable credit.
KCB Bank Kenya has secured a Ksh12.9 billion (US$100 million) financing facility from the European Bank for Reconstruction and Development (EBRD) to boost lending to micro, small and medium enterprises (MSMEs).
Women and youth-owned businesses, along with green projects, are set to receive the largest share of the funding. This is EBRD’s first investment in Kenya’s financial sector.
The facility is expected to ease access to affordable credit for small businesses. Many of these enterprises continue to face financing challenges, despite playing a critical role in the country’s economy.
Under the agreement, 35 per cent of the funds will be directed to enterprises owned by women and young entrepreneurs. Another 30 per cent will finance green investments, including climate-smart technologies and environmentally sustainable business ventures.
Besides providing the funding, EBRD will also support KCB through technical assistance aimed at strengthening its green financing portfolio. This support will include advisory services, training and technical expertise to enhance the bank’s capacity to finance sustainable projects.
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EBRD Managing Director for Sub-Saharan Africa, Dr Heike Harmgart, said the partnership would strengthen private sector growth by improving access to finance for MSMEs while supporting Kenya’s transition to a greener economy.
She noted that increasing financing for women and youth-led enterprises would promote business expansion and create employment opportunities. She described the groups as key drivers of the country’s long-term economic growth.
KCB Bank Kenya Managing Director, Annastacia Kimtai, said the facility would enable the bank to scale up affordable financing for small businesses, particularly those that have traditionally struggled to access credit.
She added that KCB would continue supporting investments in renewable energy, climate-smart agriculture and other sustainable initiatives that contribute to Kenya’s climate agenda while generating long-term economic benefits.
By Jonathan Mwinzi
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